1. What is the coupon rate for a bond with three years until maturity, a price of $1,053.46, and a yield to maturity of 6%? (Please show how to compute on finance calculator)

A) 6% B) 8% C) 10% D) 11%

2. Which of the following would not be considered by an investor when buying a zero-coupon bond? A. Bond price B. Current yield C. Discount rate D. Yield to maturity

3. What will happen to a premium bond as the time to maturity decreases (Assume that you will hold it until maturity)? A. You will be willing to sell it at a higher price B. You will be willing to sell it at a lower price C. Yield to maturity increases D. Yield to maturity decreases